Gensource Files Technical Reports for Its "Lothar" and "Lazlo" Potash Projects
01 June 2013 - 5:44AM
Marketwired Canada
Gensource Capital Corporation ("Gensource" or the "Company") (TSX VENTURE:GSP)
announces that it has filed on SEDAR two technical reports in respect the
Company's Lothar Project Potash Leases (the "Lothar Project") and its Lazlo
Project Potash Leases (the "Lazlo Project"), located in Saskatchewan.
As disclosed in the Company's press release dated March 18, 2013, following the
Company's acquisition of Nexxt Potash Inc. (renamed Gensource Potash Corporation
("GSP")) in August 2012, the Company determined that potash development will be
the Company's primary focus going forward.
GSP engaged Agapito Associates, Inc. to prepare technical reports for its
"Lothar" and "Lazlo" potash prospects upon a request from the TSX Venture
Exchange following the acquisition of Nexxt Potash. These reports discuss the
potential for potash mineralization and resources within the bounds of these
leases and the broader prospect areas. The lease areas are considered
prospective for the Patience Lake, Belle Plaine, and Esterhazy Members of the
Middle Devonian Prairie Evaporite Formation, a proven host to potash resources
and reserves in the Elk Point Basin portion of Saskatchewan.
The Lothar Project
The Lothar Project is located in south-central Saskatchewan, approximately 100
kilometers northeast of Regina, Saskatchewan and 90 km and 150 km west of the
PotashCorp Rocanville and Mosaic Esterhazy underground potash mines,
respectively. GSP currently holds 54 potash leases covering 8,634.5 acres of
freehold subsurface mineral rights in the vicinity of the town of Lemberg,
Saskatchewan. These leases were concluded with individuals beginning in November
2012 by GSP's predecessor company, Nexxt Potash Inc. with leasing operations
currently ongoing.
The geologic formations underlying and surrounding the Lothar Project are
penetrated by 7 surface drill holes, of which 5 penetrate to the Prairie
Evaporite and, for which data is available from public record sources. The
project area and the area of the freehold leases taken by GSP have been surveyed
by a number of historical reflection seismic programs. Evaluation of borehole
geophysical drillhole logs, assays of cores cut through the Prairie Evaporite,
examination of existing core from the Central Del Rio (CDR) Pheasant Creek
1-11-21-10 (DH1) historical assay and geological well site reports show that the
potash mineralization occurs within the Patience Lake and Belle Plaine Members.
The historical assay results show that the thickness of the Patience Lake Member
is 5.03m grading 15.07% K2O, 1.48% Carnallite and 9.83% insolubles. The Belle
Plaine Member is 4.42m thick and grades 24.03% K2O, 0.65% Carnallite and 3.26%
insolubles. For the overall interval from the top of the Patience Lake Member to
the bottom of the Belle Plaine Member is 14.02m grading 14.76% K2O, 1.07%
Carnallite and 6.96% insolubles if the intervening "First Halite Interbed" is
included in the calculation and 9.45m grading 19.26% K2O, 1.09% Carnallite, and
6.76% insolubles if the "First Halite Interbed" is not included in the
calculation. In general, the potash-bearing beds consist of a mineralogically
simple mixture of Sylvite and Halite named sylvinite, and minor clay, dolomite,
anhydrite and Carnallite and are thus consistent with the potash-bearing beds
throughout the potash mining belt of Saskatchewan. No inferred or indicated
mineral resources can be estimated at present, because there are no drill holes
with currently verifiable assay data located on the Lothar Project lands.
The Lazlo Project
The Lazlo Project is located in south-central Saskatchewan, approximately 115
kilometers northwest of Regina, Saskatchewan and 140 km southeast of Saskatoon,
Saskatchewan. The project is approximately 50 km northwest from the K + S
"Legacy" potash solution mining development project near Findlater, Saskatchewan
and approximately 110km northwest of the Mosaic Belle Plaine solution potash
mine. GSP currently has signed lease agreements covering 2,569 acres of freehold
subsurface mineral rights in the vicinity of the town of Craik, Saskatchewan.
These leases were concluded with individuals beginning in June 2012 with leasing
operations currently ongoing.
The geologic formations underlying and surrounding the Lazlo Project are
penetrated by 3 surface drill holes which 3 penetrate to the Prairie Evaporite
and, for which, data is available from public record sources. The project area
and the area of the freehold leases obtained by GSP have been surveyed by a
number of historical reflection seismic programs. Evaluation of borehole
geophysical drillhole logs, assays of cores cut through the Prairie Evaporite,
examination of existing core from the United Comstock (UC) Craik 13-18-25-27 W2M
historical assay and geological well site reports show that the potash
mineralization occurs within the Patience Lake, Belle Plaine, and Esterhazy
Members. The historical assay results show that the thickness of the Patience
Lake Member is 16.16m grading 22.35% K2O, 1.49% Carnallite and 0.51% insolubles.
The Belle Plaine Member is 10.12m thick and grades 19.46% K2O, 0.59% Carnallite
and 0.20% insolubles. The Esterhazy Member is 2,74m thick and grades 24.57% K2O,
0.36% Carnallite and 0.12% insolubles. For the overall interval from the top of
the Patience Lake Member to the bottom of the Belle Plaine Member is 26.28m
grading 21.24% K2O, 1.14% Carnallite and 0.39% insolubles if the intervening
"First Halite Interbed" is not included in the calculation. The "First Halite
Interbed" is not included in this calculation because it was not analyzed in the
historical assay. In general, the potash-bearing beds consist of a
mineralogically simple mixture of Sylvite and Halite named sylvinite, and minor
clay, dolomite, anhydrite and Carnallite and are thus consistent with the
potash-bearing beds throughout the potash mining belt of Saskatchewan. No
inferred or indicated mineral resources can be estimated at present, because
there are no drill holes with currently verifiable assay data located on the
Lazlo Project lands.
Mining Considerations
Because the depth to the uppermost sylvinite bed of the Patience Lake member is
more than 1,275 m in the case of the Lothar Project and 1,375 m in the case of
the Lazlo Project, recovery of the sylvinite would be by solution mining
techniques similar to those used by The Mosaic Company at the Belle Plaine mine
at Belle Plaine, Saskatchewan and the process contemplated by K+S Potash Canada
for its "Legacy" Project at Findlater, Saskatchewan. Solution mining involves
the aqueous dissolution of selected beds of potash to form a cavern.
It is the opinion of the authors of the technical reports that the grade,
thickness and distribution of potash mineralization is sufficient to justify the
expenditure of funds to undertake further work designed to assess the quality,
quantity and extent of the potash mineral resource within the bounds of the
Lothar Project and Lazlo Project lease acquisition areas.
Recommendations For Future Work
The general recommendation of the technical reports is that further investment
is justified and that land acquisition activities continue. Specific
recommendations for a phased development for both the Lothar and Lazlo Projects
are (costs in $CAN):
Phase 1
1. Acquire data for seismic lines within the lease area from commercial
sources and evaluate it for usefulness, and also acquire new two
dimensional (2D) seismic;
2. Select locations for and drill and core surface drill holes within the
proposed resource / lease areas. Drill holes should be continuously
cored from several meters above the top of the First Red Beds
immediately overlying the Dawson Bay Formation to 20 m below the deepest
sylvinite layer of the lowermost Esterhazy Member, with the cores
submitted to a laboratory for assay. The estimated cost per drill hole
is approximately $1.3 million; and
3. When the sample assay results from the drilling program are available,
prepare updated National Instrument 43-101 technical reports containing
an estimate of the inferred and indicated mineral resources covering
each proposed resource / lease area.
Phase 2
Conditional upon favorable outcomes from Phase 1, continue studies to confirm
and expand the resource base and initiate a Preliminary Feasibility Study
including:
1. Drill and core additional drill holes as required to permit expansion of
the resource base;
2. Complete Preliminary Economic Assessments (Scoping Studies) regarding
the potential economic viability of the projects. The Preliminary
Assessment should include a preliminary mine plan, assessment of
permitting issues, environmental impact, plant location, infrastructure,
capital and operating costs, a preliminary marketing study and risk
assessment;
3. Perform 3D seismic surveys covering the areas around the drill holes
from Phases 1 and Phases 2;
4. Upon completion of the drilling, sampling and assaying of the samples
from the drilling program and the 3D seismic surveys, prepare updated NI
43-101 technical reports containing an estimate of the mineral resources
covering the lease areas; and
5. Complete geotechnical and solubility testing of core.
Conditional upon a favorable outcome from Phase 2, GSP should complete Baseline
Environmental Assessments and Environmental Impact Statements (EIS); initiate
permitting, process design and marketing studies; and prepare Prefeasibility
Studies to support definition of Measured Mineral Resources and Mineral
Reserves. Costs for this work cannot be estimated at this time.
Total estimated cost for Phases 1 and 2 for the Lothar and Lazlo Projects ranges
from approximately $3.8 million for Phase 1 to $12.4 million to $13.4 million
for Phase 2.
A copy of each report can be found under the Company's profile on the SEDAR
website at www.sedar.com.
About Gensource
Gensource Capital Corporation is based in Saskatoon, Saskatchewan and is focused
on developing resource opportunities with a specific focus on potash
development. The Company's primary project is its wholly-owned subsidiary,
Gensource Potash Corporation, also based in Saskatoon Saskatchewan. Gensource
Potash Corporation is led by Mike Ferguson P.Eng., President and CEO. Mr.
Ferguson has assembled a world class management team with direct and specific
interest in potash development.
Stephen P. Halabura P.Geo. FEC (Hon.), a qualified person pursuant to National
Instrument 43-101 has reviewed and approved the technical disclosure in this
press release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Gensource Capital Corporation
Alan Cruickshank
President & CEO
(306) 974-6406
alan@gensource.ca
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